GM looking at longer-term supply contracts and partnerships for chips

The shortage will cost global automakers $110 billion in lost revenues this year, and cut production by 3.9 million vehicles, consulting firm AlixPartners has said. (File pic shows a semiconductor plant in Malaysia)

DETROIT: General Motors Co is looking at signing longer-term supply contracts or partnering with chip and wafer suppliers in the future to mitigate the impact it has seen from the global semiconductor shortage, the automaker's chief financial officer said on Wednesday.

"Whether we work with foundries to give longer-term commitments or we look to partnering with folks, we're looking at all aspects of the supply chain to really ensure that something of this magnitude as it relates to chips doesn't happen again," Paul Jacobson said at a Deutsche Bank conference.